US STOCKS-Futures edge up; S&P set for 7th straight quarterly gain

NEW YORK, Sept 30 (Reuters) - U.S. stock index futures were
modestly higher on Tuesday, indicating a rebound from the
previous session's decline as investors once again used a
pullback as a buying opportunity.

* Market volatility has surged of late, with the S&P 500
posting closing moves greater than 0.5 percent in five of the
past six sessions. Earlier this month, the benchmark index went
14 sessions without such a move, its longest such streak since
1995, according to MKM Partners. The CBOE Volatility index
, a measure of investor anxiety, climbed by more than a
third in September.

* Despite the outsized moves, the S&P has largely been
range-bound between 2,011.36, its record closing level hit
earlier this month, and 1,976.76, its 50-day moving average,
which it has not closed under for more than one session since
mid-August. The S&P is about 1.7 percent away from its record
close.

* The range has come as investors use market declines as
buying opportunities. The S&P has not had a correction, defined
as a 10 percent decline from its peak, since 2012.

* For the month of September, the Dow is down 0.2 percent,
the S&P is down 1.3 percent, and the Nasdaq is down 1.6 percent.
For the third quarter, the Dow is up 1.4 percent, the S&P is up
0.9 percent, and the Nasdaq is up 2.2 percent. Both the S&P and
Nasdaq are on track for their seventh straight quarterly
advances.

* Investors continue to keep a close eye on the situation in
Hong Kong, where thousands of pro-democracy activists protested
against the Chinese government. The Hang Seng
Index fell 1.3 percent, having declined in 15 of the past
18 sessions.

* While the economic impact to the tension is unknown,
investors have paid close attention to the rate of growth in
China. If the protests continue for an extended period, that may
add to concerns about the country's prospects.
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